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Our Bureau

New Delhi, Jan. 12

Indian Oil Corporation Ltd (IOC) expects its gross refining margin for the current quarter ending March 31 to be at $4-$5 a barrel. This was stated by Mr S.V. Narasimhan, Director (Finance) IOC, at the sidelines of Petrotech 2009.

While stating that the company was comfortable with the current crude oil prices, he said, “but the situation has to stabilise.” As regards the company’s borrowings, he said that it has declined to Rs 54,000 crore, from Rs 65,000 crore in October. This is with the help of bond sale worth Rs 8,000 crore, he said.

During the current financial year, IOC expects its diesel imports to be 0.4 million tonne. Mr Narasimhan said, “We have no further plans to import diesel this financial year. Besides, there has been a decline in diesel demand,” he said.

When asked on how the company was doing on the retail front with the softening of crude prices, he said, “We are still making negative margins on LPG and kerosene.” The public sector oil retailing companies are incurring revenue loss of Rs 32 a cylinder on LPG and Rs 14 a litre on kerosene. The companies are making over recoveries of about Rs 8 a litre on petrol and Rs 2.5 a litre on diesel.

More Stories on : Outlook | Petroleum

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